Dow

Dow - In my last 2 posts I discussed the channels that are defining the blow off phase of the Dow's 5th wave. The 5th wave has extended from one rising channel to the next that is steeper. This week prices finally topped at the top end of the second channel and broke below the blue trendline pushing the daily momentum to a sell and closing down for the week. All put together it puts a high probability on the idea that the 5th wave is over at this weeks high. Unless new evidence shows up that we have one more extension, it is over. Period. Fibonacci ratios also match well here. 5=1.618 times [1 to 3], or III of 5 = V of 5. Given that wave 5 was a blow off move, If the 5th wave is over the next move down should be just as one sided as the rise.